Damages: The Builder’s Claim Against You

Most homeowners know they might claim against a builder for delay. Fewer realise that a building contract can allow the builder to claim against the owner - for example where the owner causes delay, fails to give site access or holds up approvals.

Damages can run both ways

damages are not a mechanism commonly used in South Australian residential building contracts. More often, a builder’s entitlement arises as a claim for damages or additional delay costs where owner conduct delays the works. Read the clause to see who can claim, on what basis and in what circumstances.

Owner-caused delay is the usual trigger

Late selections, delayed access, unpaid amounts or slow decisions can expose you to a claim. Treat contractual owner deadlines as real dates.

The mechanism matters

Check whether the contract fixes a daily or weekly rate, requires proof of actual loss, or relies on an extension-of-time and delay-cost process instead. A builder’s delay claim is not automatically valid; the builder must generally demonstrate that the event actually caused delay and must comply with any contractual notice requirements.

Notice conditions often apply

A claim may depend on the builder giving notice within a set period. Understanding the process helps you assess whether a claim is valid.

Do not assume you are the only protected party

The standard HIA and MBA residential contracts allocate risk to both sides. Read the delay and damages provisions before assuming they only protect you.

Questions to ask before signing

Can the builder claim against me for delay? What triggers the claim? Is there a fixed rate or must actual loss be proved? What notice is required?

The key lesson

Delay provisions are not one-directional. Know when your own conduct could expose you to a builder’s claim before you sign.

Before You Sign

This guide provides general educational information for South Australian homeowners. It is not personalised legal advice. The effect of any issue depends on the wording of your own contract, schedules, Special Conditions, plans, specifications and the facts of the project.

A good builder and a well-understood contract should work together. Before committing to one of the largest financial transactions you may ever undertake, consider having the actual contract reviewed so you understand the obligations, notice requirements and consequences before they are tested on site.

Before You Build. One Signature. One Chance.